The clock is ticking and you are just a few hours away from joining our BETA group. Are you ready? Don’t worry, we’ll inform you shortly on the exact steps for purchasing your software license.
At the end of our first school week, we’d like to give your more details regarding the most important topic: the Crankk Proof-of-Trust (PoT) staking mechanism with its Proof-of-Network-Participation (PoNP) and Consensus nodes.
Proof-of-Trust: a new way to stake
One of the key innovations of the Crankk Network is its Proof-of-Trust (PoT) mechanism, which incentivizes honest behavior and ensures the reliability and trustworthiness of Proof-of-Network-Participation (PoNP) and Consensus nodes. Sounds good, but what exactly is PoT and how does it work? In this article we’ll provide a brief introduction and explain how it differs from other staking mechanisms.
What is Proof-of-Trust (PoT)?
PoT is a new staking mechanism that allows users to stake their $CRKK tokens and trustworthiness to participate in creating, validating transactions and providing coverage on the Crankk Network. In other words, users can earn rewards for behaving honestly and contributing to the network’s security and reliability. With PoT, Crankk Network is creating a new paradigm in staking that puts community involvement and trust at the forefront.
To participate in the network, users must stake $CRKK tokens as collateral. The more nodes (PoNP and Consensus) users stake, the more trust they are putting up as collateral, and the more rewards they can earn.
How does PoT work?
The PoT mechanism works by requiring PoNP (100$ worth of $CRKK) and Consensus nodes (300$ worth of $CRKK) to put up a certain amount of trust as collateral. If a node behaves dishonestly or fails to contribute to the network’s security and reliability, it risks decreasing its rank and its rewards being impacted by the ranking algorithm.
Staking into PoNP and Consensus nodes will take place for a period of one year.
During the first 2 months the full staking amount will be locked. This way, the network’s stability and security are maintained.
After the initial 2 months, every Crankkster is given the option to un-stake their investments of $CRKK if they wish to do so. That means that you are no longer participating in PoNP and Consensus activity, depending on which option you choose to stake in. However, if you have staked in both nodes but only choose to withdraw tokens from one of them, your stakes in the other one node will remain and continue mining tokens for you.
Once the first locking period of 30 days has passed, the “un-participate” button will become green. If you decide to press it early, your tokens will be released in exactly 30 days. However, according to best practices, fees must be paid for every early withdrawal. The fee amount is based on the length of time you have staked and it is as follows:
• First 60 days are a must
• From 60 days to 365 days, the fee percentages decrease from 50% to 0%
• After 365 days, it will be free of charge to unstake.
All the fees accumulated will go to an Unstaking pool. 100% of the tokens provided from the unstaking pool will be returned to the Crankk community as additional rewards or will be burned.
Benefits of PoT
PoT offers several benefits over other staking mechanisms. For one, it incentivizes honest behavior by rewarding users who contribute to the network’s security and reliability. This creates a level playing field that encourages community involvement and ensures that only trustworthy nodes are rewarded. PoT helps to prevent centralization by ensuring that the users with the most staked nodes are not necessarily the ones with the most power, as trustworthiness is also taken into account.
Another benefit of PoT is its flexibility. Users can stake as many or as few nodes as they want, depending on their their willingness to contribute to the network’s reliability. This makes staking accessible to a wider range of users and helps to decentralize the network further.
Finally, PoT also provides transparency and accountability. Since nodes must meet certain criteria to prove their trustworthiness, users can be assured that they are staking with reputable and trustworthy nodes. Since rewards are tied to a node ranking, users can easily track their rewards and see how they are affected by the ranking algorithm.
Proof-of-Network-Participation (PoNP) nodes
Crankk’s Proof-of-Network-Participation (PoNP) nodes are an integral part of the Crankk network ecosystem. These nodes are responsible for providing coverage, sending and receiving beacons, and contributing to the overall network participation. In return for their participation, these nodes are rewarded with $CRKK tokens.
The PoNP nodes play a critical role in the overall security and functionality of the network, as they ensure that there is a constant flow of data and communication between the devices connected to the network. The more nodes that participate in the network, the more reliable and robust the network becomes, thereby increasing the potential for new use cases and applications.
The PoNP nodes are incentivized to participate in the network through the PoT mechanism, which rewards nodes based on their contribution to the network. This ensures that the nodes are constantly working towards the network’s goals and objectives, which ultimately benefits the entire ecosystem.
The activating of the software licenses will start on April 15th 2023 at 00:00 CET and will run until April 21th at 23:59 CET. After purchasing your software license, you will receive an email with an order number based on the time stamp of your purchase on the Kadena blockchain and information on which day we will activate your license.
All current PoNP nodes will be deactivated on April 15th 2023 at 00:00 CET.
Once your software license is activated, you can start staking your PoNP nodes.
Consensus nodes are responsible for the actual process of reaching consensus on the next beaconing cycle in the Crankk Network. These nodes use the PoT consensus mechanism to ensure that the network remains secure and that all transactions are validated in a fair and consistent manner.
Consensus nodes act as directors and validators of the Send / Receive process providing a Trusted Third Party (TTP) to prove communication. This is because PoT does not require validators to perform complex computational tasks or compete against each other to create new beaconing cycles.
The activating of the software licenses will start on April 15th 2023 at 00:00 CET and will run until April 21th at 23:59 CET.
All current Consensus nodes will be deactivated on April 22nd 2023 at 00:00 CET.
The Conensus node staking will start also on April 22nd 2023 at 00:00 CET and will run until April 28th at 23:59 CET. The ratio between gateways and Consensus nodes is 1:20, so there will be around 130 places for Consensus nodes available (first come, first serve rule).
How the rewards are distributed
Every 4 hours, a Consensus node is randomly selected to initiate a radio ping. This is done to test the connectivity of the gateways in the network and to ensure that they function properly.
Once the Consensus node has been selected, it then randomly chooses an eligible gateway to send the radio ping. The selected gateway then broadcasts the signal to the other gateways in the network.
If a gateway receives the signal and reports it to the blockchain, it is eligible to receive a portion of the cycle rewards.
Half of the cycle rewards are split equally between the gateways that received the signal and reported it fast enough to the blockchain (up to a maximum of 5 gateways).
The gateway that initially sent the radio ping receives the other half of the cycle rewards. This incentivizes gateways to function properly and report any signals they receive in a timely manner.
The Consensus node that validates the entire process receives 10% of the sender’s reward. This ensures that the Consensus node is incentivized to keep the network running smoothly and to select gateways that are functioning properly.
Thank you for your support during this busy week, we can’t wait to see you on board!
Your Crankk team